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It won't be a BACS payment, it'll be a standard bank transfer, they are very different. As to whether bank transfers can be reversed, I couldn't say 100% that they couldn't.
It hasn’t happen to me, but a friend of mine is selling a very expensive load of photography gear privately. The buyer who hasn’t seen the goods and is a long way from him and doesn’t know him wants to pay via BACS and is happy to have it sent to him via post even though the value is way over £2500 and so won’t be covered fully on the insurance should it get lost. He said that he’s getting the BACS payment today, this afternoon. Can a BACS payment be reversed at all or is it 100% safe? If the buyer is found to be fraudulent but the goods have been sent where does that leave him?
It sounded too good to be true for him so he’s a little concerned.
Thanks,
Chris.
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It won't be a BACS payment, it'll be a standard bank transfer, they are very different. As to whether bank transfers can be reversed, I couldn't say 100% that they couldn't.
Interesting , Why can’t it be BACS?
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An admittedly old thread on the Martin Lewis site.
https://forums.moneysavingexpert.com...sfer-chaps-etc
If you can get through, I'd ring the receiving bank and get their confirmation so that if it goes wrong, you have some come back.
I was told by Santander that once cleared funds have hit your account they cannot be reversed without your permission, in other words the sender has to request it and you have to agree.
Just make sure the money is in the correct account before any goods are parted with.
The major UK banks usually set a lower limit for BACS payments, 'force' you (for a fee) to use CHAPS for higher value payments.Originally Posted by Stilgoe1972
Technically BACS can be used for values up to £20m per bank, per day - but that's theoretical - practically the limits are whatever your bank's terms and conditions are.
Some info here: https://www.bacs.co.uk/documentlibra...nt_schemes.pdf
(quite technical though).
As to BACS reversals: it is my understanding that BACS payments take up to 2 days to settle (remember the old days a few years back when you had to wait a few days for a bank transfer to settle in your current account? That was BACS). I'm no expert in customer's rights to reverse the payment, but a lot can happen in two days ... could the buyers simply withdraw their funds in the interim? Could they call their bank to cancel the BACS? ... I'd be very careful with this. 'Possession is 90% of the law' as the old saying goes - and as long as the money hasn't tsettled there is a risk.
That article refers to CHAPS payments though, which indeed cannot be reversed. Different story for BACS payments I believe.
That's right, but do Santander not refer to the 'Faster Payments' scheme here, rather than BACS? (I'm not a Santander customer, just know that there are different payment methods: CHAPS, BACS, Faster Payments, LINK etc. all with different rules)
BACS can be reversed but same day, your friend should wait 24hrs once cleared on the account. it is Faster Payments that can not be reversed
CHAPS was always used by solicitors etc, moving large sums to complete house purchases etc. I worked in a Govt Dept paying 5 million pmts a year and that was by BACS and hit the account two days after payment. A bank transfer (faster payments) is more for private use and generally is instant or at least within a few hours.
I’ve dealt with countless transactions, always been told by my bank that unless the transaction can be proven fraudulent then the money cannot be recalled. If you’re in any doubt just wait until the money shows in the account then ring your bank and ask a direct on whether it can be recalled or not.
Well, I suppose theoretically, it could be BACS, but it's unlikely, bank transfers aren't BACS, they're usually Faster Payments.
Cheers for the help,
Well he’s received the money in his account and has now moved it straight away into another account which may prove pointless if it is fraud. He’s now going to deliver it on Friday. I would imagine any fraud would be uncovered by then.
Cheers,
Chris.
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Although done now it's always best to call your bank and make sure it isn't really a standing order which then gets cancelled. Some scams happen that way.
If it is being sent by RMSD, and the value is over £2500, then it won't be covered at all if it goes missing.
Also, your friend needs to be certain that he has cast iron, written proof that buyer is willing to take the risk of non delivery or of damage in transit. It is normally regarded as the seller's responsibility to get an item to the buyer safely.
Faster payments in the UK can be up to £25,000 for a personal account - depends on the bank. For example:
https://www.fasterpayments.org.uk/hsbc
Most high street banks are similar.
Also see: https://www.fasterpayments.org.uk/transaction-limits
some good advice above though.
I would send as separate packages to ensure cover.
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This is what I was told too recently that faster payments which is what private people do can't be reversed unless it is a mistake and the party agrees to allowing the money to be returned.
I thought I read the best method to ask for was cash paid in you your account in branch - this cannot be reversed
A lot of banks won't allow this or will cap it at £50. They'll want a transfer instead.
“Cash”paid into your account buy somebody else Isn’t allowed anymore by NatWest. It has to be the account holder paying it in these days.
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and even if payment can't be reversed - be sure as hell bet your granny that they will take it back from you if the source was found to be fraudulent... do not release the goods until you have checked with the bank that the money has cleared.
Last edited by Xantiagib; 9th July 2020 at 12:50.
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